KUALA LUMPUR: The ringgit rallied to 4.1275/1310 against the US dollar on Wednesday, marking its strongest level since June 2021.
The local currency appreciated by 0.69 per cent compared with Tuesday’s close of 4.1550/1605.
Bank Muamalat Malaysia Bhd chief economist, Dr Mohd Afzanizam Abdul Rashid said that the ringgit sustained its strong performance throughout the day, driven by expectations that the United States Federal Reserve may further ease its monetary policy at the next Federal Open Market Committee (FOMC) meeting on Nov 8, 2024.
He said markets are anticipating a 50-basis-point rate cut, as indicated by interest rate futures.
In addition, the People’s Bank of China (PBOC) announced a reduction in its one-year medium-term loan facility rate from 2.30 per cent to 2.00 per cent to boost economic growth.
"The Chinese government has stepped up its efforts to meet the 5.0 per cent gross domestic product (GDP) growth target for this year.
"This should help ease concerns over China’s slowing economic growth to some extent. Overall, the ringgit appears to be in a favourable position at the moment,” Mohd Afzanizam told Bernama.
The ringgit also performed strongly against a basket of major currencies.
It gained versus the euro to 4.6158/6197 from 4.6274/6335 yesterday, appreciated against the British pound to 5.5189/5236 from 5.5590/5663 and strengthened vis-a-vis the Japanese yen to 2.8625/8652 from 2.8796/8836.
The ringgit was also traded higher against ASEAN currencies.
It advanced against the Singapore dollar to 3.2121/2150 from 3.2244/2289 at Tuesday’s close and appreciated against the Philippine peso to 7.38/7.39 from 7.39/7.40.
The ringgit also improved versus the Indonesian rupiah to 273.3/273.6 from 273.5/274.0 and went up to 12.6158/6353 from 12.6426/6640 against the Thai baht. - Bernama
